Philadelphia-area venture capitalists and the people they work with expect venture capital investment will drop next year, according to the results of a survey released Tuesday.
Thirty percent of 311 VCs, professional advisers and entrepreneurs surveyed at the Mid-Atlantic Capital Conference earlier this month said they expect it will decrease less than 10 percent, while 28 percent said they expect it will decrease more than 10 percent.
The survey was conducted by KPMG in conjunction with the Mid-Atlantic Capital Alliance, which held the conference in Philadelphia Dec. 2-3.
A majority, 54 percent, said they expect venture capital investment to “trend back up” in 2010. Twenty-four percent said the upswing would start next year and 19 percent said 2011.
The same majority, 54 percent, expect valuations of venture-backed companies to decline more than 10 percent in 2010. Twenty-six percent expect them to decrease less than 10 percent and 12 percent expect them to remain the same.
An even greater majority, 60 percent, expect the economy will have a significantly adverse impact on the availability of venture capital to startup or seed companies next year. Thirty-five percent expect it will have a modestly adverse impact.
No comments:
Post a Comment